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Production decisions and economic profit

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Introduction to production functions Total product, marginal product, and average product
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Fixed, variable, and marginal costMarginal cost, average variable cost, and average total costGraphs of MC, AVC and ATCMarginal revenue and marginal costMarginal revenue below average total costHow costs change when fixed and variable costs changeGraphical impact of cost changes on marginal and average costsVisualizing average costs and marginal costs as slopeThe structure of costs in the short run
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Long-run average total cost curveEconomies and diseconomies of scaleMinimum efficient scale and market concentration The structure of costs in the long run
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Economic profit vs accounting profitDepreciation and opportunity cost of capitalLong term supply curve and economic profitExplicit and implicit costs and accounting and economic profit
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Profit maximizationProfit maximization worked example
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Shutting down or exiting industry based on priceLong-run economic profit for perfectly competitive firmsLong run supply when industry costs aren't constantFree response question (FRQ) on perfect competition
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About this unit

Economic profit vs. accounting profit. Average total cost (ATC) and marginal cost (MC). Marginal product of labor (MPL). Price discrimination.